Unit 3

• Individual Influences on Consumer Behaviour

and CRM
• Motivation: Basics of Motivation, Needs,
Goals, Positive & Negative Motivation,
Rational Vs Emotional motives, Motivation
Process, Arousal of motives, Selection of goals.
Motivation Theories and Marketing Strategy -
Maslow’s Hierarchy of Needs, McGuire’s
Psychological Motives.
• Personality: Basics of Personality, Theories of
Personality and Marketing Strategy (Freudian
Theory, Neo-Freudian Theory, Trait Theory),
Applications of Personality concepts in Marketing,
Personality and understanding consumer diversity,
Brand Personality, Self and Self-Image.
• Perception: Basics of Perception & Marketing
implications, Elements of Perception, Dynamics of
Perception, Influence of perception on CB,
Consumer Imagery, Perceived price, Perceived
quality, price/quality relationship, Perceived Risk,
Types of risk, How to consumers’ handle risk
Motivation: Basics of Motivation,
• Needs, Goals, Positive & Negative Motivation,
• Rational Vs Emotional motives,
• Motivation Process,
• Arousal of motives,
• Selection of goals.
• Motivation Theories and Marketing Strategy -
Maslow’s Hierarchy of Needs, McGuire’s
Psychological Motives.
Basics of Motivation,
• People are motivated by many things, some
positive others not.
• Some motivating factors can move people
only a short time, like hunger which will last
only until you are fed.
• Others can drive a person onward for years.
• Motivation is the driving force within
individuals that impels them to action.
• Motivation is the activation or energization of
goal-oriented behavior.
• Motivation may be intrinsic or extrinsic.
• The term is generally used for humans but,
theoretically, it can also be used to describe
the causes for animal behavior as well.
• According to various theories, motivation may
be rooted in the basic need to minimize
physical pain and maximize pleasure.
• It may include specific needs such as eating
and resting, or the desired object, hobby,
goal, state of being, ideal, or
It may be attributed to less-apparent
reasons such as altruism, morality, or
avoiding mortality
Principles concerning the distinction between
right and wrong or good and bad behaviour.
NEEDS:

• Needs are the essence of the marketing

concept.
• Marketers do not create needs but can make
consumers aware of needs.
• A need is something that is necessary for
humans to live a healthy life.
• Needs are distinguished from
wants because a deficiency would
cause a clear negative outcome,
such as dysfunction or death.
• Needs can be objective and
physical, such as food and water.
Types of Needs
• Innate Needs: Physiological (or biogenic)
needs that are considered primary needs or
motives
• Acquired Needs: Learned in response to our
culture or environment. Are generally
psychological and considered secondary needs
GOALS:
• A goal or objective is a projected state of affairs
that a person or a system plans or intends to
achieve.
• A personal or organizational desired end-point
in some sort of assumed development.
• It is the sought-after results of motivated
behavior.
 Goal
• A goal is an idea of the future or desired result
that a person or a group of people envision,
plan and commit to achieve
Types of goals:

• Generic goals: are general categories of goals

that consumers see as a way to fulfill their
needs

• Product-specific goals: Are specifically

branded products or services that consumers
select as their goals
 Positive & Negative Motivation

•  Positive motivation is a response that

includes enjoyment and optimism about the
tasks that you are involved in.
• Positive motivation induces people to do
work in the best possible manner and to
improve their performance.
• Better facilities and rewards are provided for
their better performance.
• Such rewards and facilities may be financial
and non-financial.
Negative motivation aims at controlling the
negative efforts of the work and seeks to
create a sense of fear for the worker,
• It is based on the concept that if a worker fails
in achieving the desired results, he should be
punished.
• Negative motivation involves undertaking
tasks because there will be undesirable
outcomes.
• Both positive and negative motivation aim at
inspiring the will of the people to work but
they differ in their approaches.
• Whereas one approaches the people to work
in the best possible manner providing better
monetary and non-monetary incentives.
• The other tries to induce the man by cutting
their wages and other facilities and amenities
on the belief that man works out of fear.
RATIONAL VERSUS EMOTIONAL MOTIVES:
• Rationality implies that consumers select
goals based on totally objective criteria such
as size, weight, price, or miles per gallon.
• A conscious, logical reason for purchase.
• A motive that can be defended by reasoning
or logical argument
• Emotional motives imply the
selection of goals according to
personal or subjective criteria.
• A feeling experienced by a customer
through association with a product.
• The Dynamic Nature of Motivation:
– Needs are never fully satisfied.
– New needs emerge as old needs are
satisfied.
– People who achieve their goals set
new and higher goals for themselves.
THE MOTIVATION PROCESS:
AROUSAL OF MOTIVES:
• Physiological arousal
• Emotional arousal
• Cognitive arousal
• Environmental arousal
Physiological Arousal
– Bodily needs at any one specific moment in
time are based on the individual
physiological condition at the moment.
– Eg. Stomach contractions will trigger
awareness of a hunger need.
– Eg. A decrease in body temperature will
induce shivering, which makes individuals
aware of the need for warmth this type of
thing.
Emotional Arousal
• Sometime daydreaming results in the arousal
or stimulation of latent needs.
• People who are bored or who are frustrated in
trying to achieve their goals or often engage in
daydreaming, in which they imagine
themselves in all sorts of desirable situations.
• Eg. A young woman who may spend her free
time in an internet single chat room.
Cognitive arousal
• Sometime random thoughts can lead
to a cognitive awareness of needs.
• An advertisement that provides
reminders of a home might trigger
instant yearning to speak with one's
parents.
Environment arousal
• The set of needs an individual experiences at a
particular time are often activated by specific cues
in the environment.
• Without these cues, the needs might remain
dormant.
• eg.The 8’o clock news, the sight or smell of bakery
goods, fast food commercials on television, all
these may arouse the need for food.
• Eg. New cell phone model display in the store
window.
SELECTION OF GOALS:

 The goals selected by an individual depend on

their:
• Personal experiences
• Physical capacity
• Prevailing cultural norms and values
• Goal’s accessibility in the physical
and social environment
 MOTIVATION THEORIES AND MARKETING
STRATEGY
• Abraham Maslow’s “Need Hierarchy Theory”:
Physiological needs:
• These are important needs for
sustaining human life.
• Food, water, warmth, shelter, sleep,
medicine and education are the
basic physiological needs.
Security or Safety needs:
• These are the needs to be free of physical
danger and of the fear of losing a job,
property, food or shelter.
• It also includes protection against any
emotional harm.
Social needs:
• People are social beings,
• They need to belong and be
accepted by others.
• People try to satisfy their need for
affection, acceptance, and
friendship.
Esteem needs:
• This kind of need produces such
satisfaction as power, prestige status,
and self-confidence.
• It includes both internal esteem
factors like self-respect, autonomy
and achievements and external
esteem factors such as status,
recognition, and attention.
Need for self-actualization:
• Maslow regards this as the highest
need in his hierarchy.
• It is the drive to become what one is
capable of becoming,
• It includes growth, achieving one’s
potential and self-fulfillment.
• Personality: Basics of Personality, Theories of
Personality and Marketing Strategy (Freudian
Theory, Neo-Freudian Theory, Trait Theory),
Applications of Personality concepts in
Marketing, Personality and understanding
consumer diversity, Brand Personality, Self and
Self-Image.
BASICS OF PERSONALITY:

Meaning of Personality:
• The inner psychological characteristics that
both determine and reflect how a person
responds to his or her environment.
 THEORIES OF PERSONALITY
There are three major theories of personality
they are
•  Freudian theory.
• Neo-Freudian theory.
• Trait theory.
Freudian theory:

Sigmund Freud’s theory of personality is a

cornerstone of modern psychology.
This theory is built on the bases of
unconscious needs.
• Id, superego, and ego
•  A Representation of the interrelationships
among the Id, Ego, and superego can be
shown with the help of a diagram
Freudian theory
Id, Ego, Super Ego
The id
• Conceptualized as a “warehouse" of primitive
and impulsive drives-basic physiological needs
such as thirst, hunger, and sex-for which the
individual seeks immediate satisfaction
without concern for the specific means of
satisfaction.
• The superego is conceptualized as the
individual's internal expression of society's
moral and ethical codes of conduct.
• The superego's role is to see that the
individual satisfies needs in a socially
acceptable fashion.
• The superego is a kind of "brake" that
restrains or inhibits the impulsive forces of the
id.
The ego is the individual's conscious control.
• It functions as an internal monitor that
attempts to balance the impulsive demands of
the id and the socio-cultural constraints of the
superego.
 Trait Theory
It is defined as “any
distinguishing, relatively
enduring way in which
one individual differs
from another”
Trait Theory
APPLICATIONS OF PERSONALITY CONCEPTS IN MARKETING
Need for cognition (NC):
• Cognition measures a person's craving for or
enjoyment of thinking.
• Consumers who are high in NC are more likely
to be responsive to the part of an ad that is rich
in product-related information or description.
• Consumers who are relatively low in NC are
more likely to be attracted to the background
or peripheral aspects of an ad, such as an
attractive model or well-known celebrity.
Consumer ethnocentrism focuses on
the responsibility and morality of
purchasing foreign‐made products and
the loyalty of consumers to products
manufactured in their home country
SELF AND SELF-IMAGE:

• Consumers have a variety of lasting images of

themselves.
• These images are associated with personality
in that individual’s consumption relates to self-
image.
One or multiple selves: A consumer who acts
differently in different situations or with
different people.
• A person is likely to behave in different ways
at home, at work or with friends.
• It’s normal that a person is likely to display
different personalities in different situations
and social roles.
 Extended self:
• It is an interrelationship between consumers'
self-image and their possession.
• A consumer’s possession may extend their
self-image in a number of ways- Actually,
Symbolically, Conferring status or rank,
Bestowing feelings of immortality, Endowing
with magical powers.
 Perception
• Basics of Perception & Marketing implications,
Elements of Perception, Dynamics of
Perception, Influence of perception on CB,
Consumer Imagery, Perceived price, Perceived
quality, price/quality relationship, Perceived
Risk, Types of risk, How to consumers’ handle
risk
Perception
• Perception is the sensory experience of
the world.
• It involves both recognizing
environmental stimuli and actions in
response to these stimuli.
• In reality is a totally personal
phenomenon, based on that person
need, want s, values, and personal
experiences.
Sensation:

• Sensation Is the immediate and direct

response of the sensory organs to
stimuli.
• A stimulus may be any unit of input to
any of these senses.
• Examples of stimuli include products,
packages, brand names, advertisements,
and commercials.
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